Alphabet: Fiscal 1Q26 Financial Results

Total Revenue of $109.9 billion, down 3.4% QoQ and up 22% YoY

This is a Press Release edited by StorageNewsletter.com on May 13, 2026 at 2:01 pm

Summary:

Consolidated Alphabet revenues increased 22%, or 19% in constant currency, to $109.9 billion, reflecting strong performance across the business and our 11th consecutive quarter of double-digit growth
Google Services revenues increased 16% to $89.6 billion, led by 19% growth in Google Search & other, 19% in Google subscriptions, platforms, and devices, and 11% in YouTube ads
Google Cloud saw a meaningful acceleration in growth as revenues increased 63% to $20.0 billion, led by an increase in GCP across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services
Consolidated Alphabet operating income increased 30% and operating margin expanded by 2 percentage points to 36.1%
Other income reflected a net gain of $37.7 billion, primarily the result of net unrealized gains on our nonmarketable equity securities
Net income increased 81% and EPS increased 82% to $5.11
The company announced a 5% increase to the dividend, resulting in a quarterly cash dividend of $0.22

Alphabet Inc. announced financial results for the quarter ended March 31, 2026.Sundar Pichai, CEO, Alphabet and Google, said: “2026 is off to a terrific start. Our AI investments and full stack approach are lighting up every part of the business. Search had a strong quarter with AI experiences driving usage, queries at an all time high, and 19% revenue growth. Google Cloud revenues grew 63% with backlog nearly doubling quarter on quarter to over $460 billion. This was our strongest quarter ever for our consumer AI plans, driven by the Gemini App. Overall the number of paid subscriptions has now reached 350 million, with YouTube and Google One being the key drivers. Gemini Enterprise has great momentum with 40% quarter on quarter growth in paid monthly active users. And, finally, I’m pleased to see Waymo surpass 500,000 fully autonomous rides a week. These outstanding results are built on our differentiated, full stack approach. Our first-party models, like Gemini, are now processing more than 16 billion tokens per minute via direct API use by our customers, up 60% from last quarter. It’s really exciting to see how our AI investments are delivering value for our users, customers and business.”